Financial Scams

How to Protect Vulnerable Groups from Scams

By Kelly Merger

As technology becomes more sophisticated, so too does cybercrime. This puts all of us at increased risk of falling victim to financial scams. However, some people are especially vulnerable and require additional support to protect themselves. Here are three groups who are at high risk of being exposed to scams and tips on how they can be protected.

Elderly people

A recent report on credit card scams found that 42.6% of victims were Baby Boomers, 37.6% were Generation X, and 33.1% were Millennials. There are a few reasons why older generations are more susceptible to scams than others. Firstly, seniors are often less tech-savvy, because they’re not as familiar with the likes of digital devices, online shopping, and internet banking as younger generations.

In addition, elderly people are some of the wealthiest in society because they’ve had more time to accumulate wealth – making them prime targets for scammers. As age-related cognitive degeneration can make it harder for some elderly people to recognize signs of fraud, it can be easier for them to fall victim to sophisticated scams.

We can protect elderly people by helping them improve their tech skills and informing them about common cybercrime strategies, such as phishing and malware, to help them spot the signs.

People with disabilities or chronic illness

Of those living with a disability, chronic disease, or mental health condition, up to 40% report feeling lonely and socially isolated. Loneliness is a risk factor for financial scams because it makes it easier for scammers to build a rapport with their victims and convince them to hand over money or share sensitive financial information. Unfortunately, social isolation also makes it less likely that someone else will spot the signs of fraud and intervene on behalf of the victim.

Individuals with learning disabilities are at a particularly high risk because they may not be able to spot the signs of a scam before it’s too late. The best way to protect people with disabilities and chronic illness is to alleviate their isolation and strengthen their ties with their community.

People with a low income or high debts

People who are under financial pressure are more vulnerable to scams than those who are financially secure. Individuals with low incomes, particularly those who urgently need money, are more likely to fall victim to scams that promise they can earn or save money.

Similarly, people in high debt may be more likely to ignore the warning signs of a scam in their desperation to pay off what they owe. Some scammers even pretend to be debt collection agents and attempt to intimidate people into handing over cash, and they’re more likely to be successful when targeting those who have lots of debt.

People struggling with financial instability are best protected when they are armed with knowledge about their finances. They should know exactly what they owe and to whom, so that they can recognize fraudulent debt collectors and only discuss payment plans directly with their creditors.

Look out for vulnerable groups to prevent scams

One of the simplest ways to protect these groups against fraud is to inform them of the common signs of scams. If there’s a vulnerable person in your life, start by having an open conversation with them about risks and red flags, and encourage them to consult you before taking action whenever they receive any unusual communications.

About the Author:

Being a caregiver herself for many years, Kelly understands how important it is to protect vulnerable members of our society. When she isn’t sharing her tips and tricks for helping others, she can often be found painting or enjoying a good TV drama series.

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